J25 BNI Derby Business Networking

Business Network International (BNI) has announced a 21 per cent increase in the amount of business passed between members through ‘word-of-mouth’ referrals in 2009.

The business referral organisation increased the amount of business passed between members in 2009 by 21 per cent, which translated to GBP230m - up from GBP185m in 2008.

Charlie Lawson, national director at BNI, said: ‘The recession has changed the way people do business but more importantly the route that SMEs are using to market themselves.

‘The advent of “word-of-mouth referrals” has proven people are more likely to spend their money on a product or service if it has been directly recommended to them as the nation has become more cautious about the way it spends.

‘It’s not widely known that 98 per cent of businesses rely on referrals for gaining new business, yet only three per cent have a strategy for gaining word-of-mouth referrals - this is why many small businesses have turned to and have increased this crucial marketing activity,’ he added.